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Morning Bell With Jim Cramer: How to Invest Your Stimulus Checks

Jim Cramer shares stock-market news including investing your stimulus checks, Bitcoin and Silver, and experiences in short-selling in the stock market.

Dow futures are higher Tuesday morning as investors focus on Wall Street returns to quarterly earnings and economic recovery prospects Tuesday as the recent Reddit-fueled grip on markets fades and volatility eases.

In the last episode of Mad Money, Jim Cramer has some themes that will help investors find the stocks that offer the best kind of risk, the risk of rewards.

TheStreet's Katherine Ross and Cramer are talking about investing with your stimulus checks, Bitcoin and Silver, and experiences in short-selling in the stock market.

Investing With Your Stimulus Checks

Cramer said he would advise Wall Street to put the first $10,000 in an index fund. "I'm offering FAANG vs the S&P 500. I'll take the S&P 500 because I think it's a good bedrock."

Bitcoin: Buy Or Sell?

Day traders on Reddit on Monday turned their attention to precious metals like silver which raced to an eight-year high.

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Cramer said silver as a commodity is a very industrial metal. "I have always found that silver was levered to GDP growth, not to precious metal, jewelry, and store holder value. I prefer Bitcoin to silver in terms of store holder value. The problem is there are only a few companies large enough to invest in. The two that I have always favored are Pan American Silver, which's a very big producer. And I also like Wheaton Precious Metals. Silver is not a big market with 60-70% made up of industrials, that's LED, semiconductors, car RFIDs, etc."

Cramer's Experience With Short-Selling 

Shares of GameStop  (GME) - Get GameStop Corporation Report and other companies caught up in the battle between short-sellers vs ordinary investors on Reddit's WallStreetBets all declined Tuesday.

Cramer said a situation like GameStop is flawed because it got too heavily shorted. "Sometimes you have to say that short position is too big and it is without appropriate risk controls. Some of these stocks are just bad bets. Having $70 billion in shorted stocks is regulatory risk, not a systemic one. I think we're making mistakes."

None of these stocks is a key holding in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.